Advantages of transferring credit card balances

Advantages of transferring credit card balances

You may have just returned from a long vacation and now have an even bigger credit card debt. Transferring credit card balances has many advantages, but it is not without negative implications as well. Here are a few ways that transferring credit card balances is a good idea.

When you transfer the balance from one credit to another, the only real reason to do it is if the second credit card offers you a lower rate of interest. You can save on all that potential interest money, which you otherwise would have paid the credit card #1 – only if you manage to pay back all that debt over time. If you do not do that, then interest on credit card #2 can quickly add up.

If you have multiple cards and have lost track of each of their due dates and billing dates, then transferring all the balances to one card will simplify your financial life.

Apart from balances from other credit cards, there are credit cards that allow the option of transferring other loans from the bank, such as your car loan or a personal loan.

Transfer fees will always apply, and there is no cap on the fees. Therefore, the more you transfer, the greater will be the fees. It only makes sense to transfer if the total interest accrued would exceed the total transfer fees. Calculate everything before you transfer the balance.

To sum up, you can avail yourself of the advantages of transferring a credit balance only if:

  • Interest rates are zero or low on the new card.
  • Consolidating all your debt into one card will simplify your life.
  • Pay the transferred amount on time to avoid additional interest.
  • Calculate total transfer fees and total interest savings to make a sound decision.

Featured Posts

Ottawa Wants To Invite Chinese Students, Tourists and Workers to Canada

Canada is soon set to receive up to twice the number of the Chinese tourists, students, workers, and travelers. Currently, there are a paltry five visa offices in China, but the number is set to triple over the next couple of months. These centers will be located in Chengdu, Nanjing, Wuhan, Jinan,…

Chinese Development Bank Approves First Loans

The outcome of Britain’s referendum that was held last week is expected to have an impact on the world economy in the coming days. Nonetheless, Asian Infrastructure Investment Bank, a Chinese based development bank, started to offer loans to clients on June 24th. The management team stated…

New Jersey Family Wins $429.6 Powerball

The Powerball has just made a 70-year-old woman, Perlie Smith, $429.6 million richer. On May 13, 2016, Ms. Smith was identified as the Powerball jackpot winner. She has seven children, of whom Valerie Arthur is the eldest. Arthur just retired as a prison administrator for the Department of…

Saudi Arabia wants to buy more US refineries

Saudi Arabia is one of the most controversial, but richest countries on the planet. The country developed quickly immediately after discovering oil. Now they are providing fuel for many countries. The producers in Saudi Arabia also want to expand their business by buying more US refineries. Why now?…

What is a mutual fund?

When it comes to your money, it is very important to be informed. You have to know exactly how to manage your funds and how you can use your money to increase your income. It is very tempting to risk everything you have and hope for the best, but it is really not a good idea? What is the best way to…

What is a reverse mortgage?

Homeowners who are 62 or older can access money based on the value of their mortgage-free home. It is another word for a loan but it doesn’t have to be repaid until you sell your home or move. A reverse mortgage means that you receive a certain amount of money that you can use to help your…